Excise duty exemption under notification 10/97

[Vivek anandhan]

We are going to despatch our product without payment of duty under notification 10/97(Research Instute - Public funded),  whether we have to reverse 5% of duty under the Cenvat Credit Rule, 2004(rule 6)

Can any body explain me.

V.Vekanandhan

Sunbeam Generators Pvt ltd.,

[Snehal Kulkarni]

Yes,

 

You have to reverse an amount ( and not the Duty ) equal to 5% of the Value of the exempted goods, if you have not maintained the seperate account for dutiable and exempted goods.

 

Example : If the Value of the Exempted Goods is Rs 100, then you have to reverse Rs 5.

This will Non Cenvatable and Cost to you. This value will not reflect on the Excise Invoice hence not recoverable from the Customer.

 

[Vivek anandhan]

Thanks  Mr.Mangesh Lokre

[Vivek anandhan]

Thanks  Mr.Mangesh Lokre

[Vivek anandhan]

Thanks  Mr.Mangesh Lokre

AI Summary

Clarification on Duty-Free Dispatch: Companies Must Reverse 5% Value of Exempted Goods per Cenvat Credit Rule, 2004. A company inquired about dispatching products without paying duty under notification 10/97 for public-funded research institutes and whether they need to reverse 5% of the duty under Cenvat Credit Rule, 2004. A respondent clarified that if separate accounts for dutiable and exempted goods are not maintained, the company must reverse 5% of the value of exempted goods, which is non-recoverable and non-Cenvatable. The original inquirer expressed gratitude for the clarification.